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Cresud S.A.C.I.F. y A. Financial Report: Navigating Losses & Agribusiness Challenges

$CRESY
Form 6-K
Filed on: 2025-02-10
Source
Cresud S.A.C.I.F. y A. Financial Report: Navigating Losses & Agribusiness Challenges

Key Information Extracted from the Financial Report (Form 6-K) of Cresud S.A.C.I.F. y A.

  1. Company Overview
  • Name: Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria
  • Incorporation: Republic of Argentina
  • Principal Shareholder: Eduardo Sergio Elsztain, owning 38.67% of shares.
  1. Financial Performance (Six-Month Period Ending December 31, 2024)
  • Net Result: Loss of ARS 64,391 million, primarily due to changes in fair value of investment properties.
  • Adjusted EBITDA: ARS 134,961 million, a decrease of 15.3% compared to the same period in the previous year.
    • Agribusiness EBITDA: ARS 35,262 million.
    • Urban EBITDA (through IRSA): ARS 103,136 million.
  1. Comprehensive Income
  • Total Comprehensive Income:
    • For the period ending December 31, 2024:
    • Attributable to controlling company shareholders: (149,524) million ARS.
    • Non-controlling interest: 567,262 million ARS.
  • Other Comprehensive Income:
    • For the same period:
    • Attributable to controlling company shareholders: (30,620) million ARS.
    • Non-controlling interest: 107,984 million ARS.
  1. Equity Details (As of December 31, 2024)
  • Total Shareholder's Equity: 1,659,876 million ARS.
  • Equity Attributable to Controlling Company’s Shareholders: 739,254 million ARS.
  • Total Shares Outstanding: 596,742,899 common shares.
  1. Market Capitalization
  • As of December 31, 2024, the market capitalization was approximately USD 761.8 million.
  1. Dividends
  • Cash dividend distributed in November 2024: ARS 45,000 million (approximately 7% yield).
  1. Warrants
  • The company issued 90 million warrants in March 2021 expiring on March 10, 2026. Current warrants outstanding: 81,063,170.
  • If all warrants were converted, total shares would increase to 717,236,847.
  1. Agribusiness Outlook
  • The 2025 campaign is challenged by historically low commodity prices, but there is a slight recovery in commodity prices due to a recent temporary tax reduction on exports (soybean from 33% to 26%, wheat and corn from 12% to 9.5%).
  1. Property Sales
  • The company sold parts of its farms for USD 2.2 million and BRL 189.4 million during the first half of fiscal year 2025.

Summary of Insights

  • The company is facing significant financial challenges, as evidenced by the reported loss and reduced EBITDA.
  • The management is attempting to navigate a difficult agribusiness environment with strategic actions like selling assets and adjusting operational strategies.
  • The reduction in export taxes by the Argentine government could have a positive impact on future revenues.
  • Shareholder equity remains substantial, and the company continues to offer dividends, indicating an effort to maintain shareholder confidence despite the losses.
  • Monitoring the implementation of the warrant strategy and its effects on share dilution will be crucial for stakeholders.